4 Ways Contracting Can Help Your Direct Hire Business Grow

One of the most common reasons we hear for why recruiters don’t offer contract staffing is because they don’t want to take away from their direct hire business.

But when you have a contract staffing back-office handling the financial, administrative, and legal tasks associated with contract placements, those placements don’t take a significant time away from your direct hire job orders.

Do NOT give business to your competition

In fact, here are four ways that contracting can actually improve your direct hire business:

1. The new clients you attract by providing contract staffing services may also decide to use you for their direct-hire needs.

2. Your existing direct-hire clients may become more loyal to you because you can satisfy all their needs, so they will be less likely to find other recruiters.

3. The financial security contracting provides gives you the power and confidence to turn down bad business, giving you more time to work good job orders, both contract and direct.

4. Contract positions can convert to direct-hires. And when they do, you not only do you earn your hourly contracting income, but you can also earn a conversion fee.

Contract staffing does NOT take away from your direct hire business. In fact, it can enhance your direct hire business! Consider adding contract staffing to your business model this year. You can make contract placements, make more direct hire placements, and position yourself as a sole-source provider for your base of client companies.

If you don’t offer contract staffing services to your clients, then you’re “leaving money on the table.” Your clients are hiring contractors, and if they’re not hiring them from you, then they’re hiring them with the help of another recruiting firm. And that firm could quite possibly be one of your competitors.